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Abstract:

A computer implemented method for performing payment account billing
address verification. The method comprises the steps of receiving an
authorization request, including payment account information and billing
address information, from a merchant. The authorization request is
transmitted to an issuer associated with the payment account. At the same
time, an address verification request is transmitted, including the
payment account information and billing address information, to an
outside service provider. The authorization response from the issuer and
the results of the address verification address are received. An
indication is made on the authorization response regarding the results of
the address verification request, and the authorization response is
transmitted to the merchant.

Claims:

1. A computer implemented method for performing payment account billing
address verification, the method comprising: receiving, by one or more
computer processors, via a network, an authorization request from a
merchant computer system, the authorization request including payment
account information and billing address information obtained from a
cardholder; transmitting, by the one or more computer processors, the
authorization request to an issuer computer system associated with the
payment account; transmitting, by the one or more computer processors, an
address verification request, including the payment account information
and billing address information, to a service provider computer system;
receiving, by the one or more computer processors, an authorization
response from the issuer computer system; receiving, by the one or more
computer processors, a result of the address verification request from
the service provider computer system; indicating, by the one or more
computer processors, on the authorization response, the result of the
address verification; and transmitting, by the one or more computer
processors, the authorization response, including the result of the
address verification, to the merchant computer system.

2. The method of claim 1, wherein the service provider is a credit
reporting agency.

3. The computer-implemented method of claim 1, further comprising, prior
to transmitting the address verification request to the service provider,
determining whether the bank identification number (BIN) contained
therein corresponds to a bank residing in a country which performs
traditional AVS processing, and responsive to determining that the BIN
does not correspond to a bank residing in a country which performs
traditional AVS processing, proceeding to transmitting the address
verification request to the service provider.

4. The computer-implemented method of claim 1, wherein the result of the
address verification comprises one of no match, exact match, street level
match, and postal code level match.

5. The computer-implemented method of claim 1, wherein the transmitting,
by the one or more computer processors, the authorization request to an
issuer computer system associated with the payment account, comprises
transmitting via an authorization network.

6. The computer-implemented method of claim 5, wherein the transmitting,
by the one or more computer processors, an address verification request,
including the payment account information and billing address
information, to a service provider computer system, is via a network
other than the authorization network.

7. The computer-implemented method of claim 1, wherein the transmitting
and receiving the address verification request are performed prior to
transmitting the authorization request, and, responsive to receiving a
positive address verification request, the authorization request is
transmitted, and responsive to receiving a negative address verification
request, the authorization request is not transmitted.

8. A computer system for performing payment account billing address
verification, the system comprising: one or more computer processors; a
memory in communication with the one or more processors and storing
program instructions, the one or more processors operative with the
program instructions to: receive an authorization request from a merchant
computer system, the authorization request including payment account
information and billing address information obtained from a cardholder;
transmit the authorization request to an issuer system associated with
the payment account; transmit an address verification request, including
the payment account information and billing address information to a
service provider system; receive an authorization response from the
issuer system; receive a result of the address verification request from
the service provider system; and transmit to the merchant system the
authorization response, including the result of the address verification.

9. The computer system of claim 8, wherein the service provider system is
one of a credit reporting agency system and a merchant system.

10. The computer system of claim 8, wherein the one or more processors
are further operative with the program instructions to: prior to
transmitting the address verification request to the service provider,
determine whether the bank identification number (BIN) contained therein
corresponds to a bank residing in a country which performs traditional
AVS processing, and responsive to determining that the BIN does not
correspond to a bank residing in a country which performs traditional AVS
processing, proceed to the transmitting the address verification request
to the service provider.

11. The computer system of claim 8, wherein the one or more processors
are further operative with the program instructions to: prior to
transmitting the address verification request to the service provider,
determine whether the bank identification number (BIN) contained therein
corresponds to a bank residing in a country which performs traditional
AVS processing, and responsive to determining that the BIN corresponds to
a bank residing in a country which performs traditional AVS processing,
transmit the authorization request, including billing address
information, to the issuer system, and omit transmitting the address
verification request to the service provider system.

12. The computer system of claim 8, wherein the result of the address
verification comprises one of no match, exact match, street level match,
and postal code level match.

13. The computer system of claim 8, wherein the one or more computer
processors are operative with the program instructions to transmit the
authorization request to the issuer computer system associated with the
payment account via an authorization network.

14. The computer system of claim 13, wherein the one or more computer
processors are operative with the program instructions to transmit the
address verification request, including the payment account information
and billing address information, to the service provider computer system,
via a network other than the authorization network.

15. The computer system of claim 8, wherein the one or more computer
processors are operative with the program instructions to transmit and
receive the address verification request prior to transmitting the
authorization request, and, responsive to receiving a positive address
verification request, to transmit the authorization request, and
responsive to receiving a negative address verification request, not
transmit the authorization request.

16. A computer system for performing payment account billing address
verification, the system comprising: one or more computer processors; a
memory in communication with the one or more processors and storing
program instructions, the one or more processors operative with the
program instructions to: receive an authorization request from a merchant
computer system, the authorization request including payment account
information and billing address information obtained from a cardholder;
transmit an address verification request, including the payment account
information and billing address information to a service provider system;
receive a result of the address verification request from the service
provider system; transmit an authorization request to an issuer system
associated with the payment account, including the result of the address
verification request; receive an authorization response from the issuer
system; and transmit to the merchant system the authorization response,
including the result of the address verification.

17. The computer system of claim 16, wherein the one or more processors
are further operative with the program instructions to: prior to
transmitting the address verification request to the service provider,
determine whether the bank identification number (BIN) contained therein
corresponds to a bank residing in a country which performs traditional
AVS processing, and responsive to determining that the BIN does not
correspond to a bank residing in a country which performs traditional AVS
processing, proceed to the transmitting the address verification request
to the service provider.

18. The computer system of claim 16, wherein the result of the address
verification comprises one of no match, exact match, street level match,
and postal code level match.

Description:

CROSS-REFERENCE TO RELATED APPLICATIONS

[0001] None.

FIELD OF INVENTION

[0002] The present disclosure relates to systems and methods for
performing payment account address verification operations, and more
specifically to systems and methods for performing payment account
address verification operations which do not rely on address information
obtained from a payment account issuer.

BACKGROUND

[0003] The rapid growth of eCommerce, including online retail shopping,
provides consumers and merchants the convenience of conducting
transactions across the globe, without requiring any in-person
interaction. These transactions may be performed by consumers accessing
merchant-specific websites via the internet, or merchant-specific
software applications previously downloaded onto their mobile devices.
While offering a high level on convenience for both consumers and
merchants alike, a distinct area of concern regarding these types of card
not present transactions includes fraud prevention, as it is difficult to
verify that, for example, a customer making an online payment account
purchase is indeed who they purport to be.

[0004] Many systems have been developed with a goal of minimizing the risk
of fraudulent eCommerce purchases. For example, many countries have
adopted the use of address verification systems. These systems are tasked
with confirming that a billing address of a payment account provided by a
customer at the time of purchase matches a billing address stored in a
database of the payment account issuer (e.g. an issuing bank). In this
way, a would-be fraudulent purchaser must not only be in possession of a
payment card, but moreover, must have knowledge of the correct billing
address associated with the card in order to successfully complete an
online transaction. However, as currently implemented, not all payment
account issuers possess the required infrastructure or databases
necessarily to perform these verification steps.

[0005] Accordingly, alternative systems and methods for verifying billing
addresses associated with payment accounts for the purpose of fraud
prevention are desired.

SUMMARY

[0006] In one embodiment of the present disclosure, a computer implemented
method for performing payment account billing address verification is
provided. The method comprises the steps of receiving, by one or more
computer processors, via a network, an authorization request from a
merchant computer system, the authorization request including payment
account information and billing address information obtained from a
cardholder; transmitting, by the one or more computer processors, the
authorization request to an issuer computer system associated with the
payment account; transmitting, by the one or more computer processors, an
address verification request, including the payment account information
and billing address information, to a service provider computer system;
receiving, by the one or more computer processors, an authorization
response from the issuer computer system; receiving, by the one or more
computer processors, a result of the address verification request from
the service provider computer system; indicating, by the one or more
computer processors, on the authorization response, the result of the
address verification; and transmitting, by the one or more computer
processors, the authorization response, including the result of the
address verification, to the merchant computer system.

[0007] In another embodiment, a computer system for performing payment
account billing address verification is provided. The system includes one
or more computer processors and a memory in communication with the one or
more processors and storing program instructions. The one or more
processors are operative with the program instructions to: receive an
authorization request from a merchant computer system, the authorization
request including payment account information and billing address
information obtained from a cardholder; transmit the authorization
request to an issuer system associated with the payment account; transmit
an address verification request, including the payment account
information and billing address information to a service provider system;
receive an authorization response from the issuer system; receive a
result of the address verification request from the service provider
system; and transmit to the merchant system the authorization response,
including the result of the address verification.

[0008] In another embodiment, a computer system for performing payment
account billing address verification and furnishing address data to an
issuer system is provided. The system includes one or more computer
processors and a memory in communication with the one or more processors
and storing program instructions. The one or more processors are
operative with the program instructions to: receive an authorization
request from a merchant computer system, the authorization request
including payment account information and billing address information
obtained from a cardholder; transmit an address verification request,
including the payment account information and billing address information
to a service provider system; receive a result of the address
verification request from the service provider system; transmit an
authorization request to an issuer system associated with the payment
account, including the result of the address verification request;
receive an authorization response from the issuer system; and transmit to
the merchant system the authorization response, including the result of
the address verification.

BRIEF DESCRIPTION OF THE DRAWINGS

[0009] FIG. 1 illustrates a system architecture within which some
embodiments of the present disclosure may be implemented.

[0010] FIG. 2 is a functional block diagram of a card network or managing
computer system in accordance with an exemplary embodiment of the present
disclosure.

[0011] FIG. 3 illustrates a process flow diagram of a prior art process
for verifying a billing address associated with a payment account.

[0012] FIG. 4 illustrates a process flow diagram of an exemplary
alternative process for verifying a billing address associated with a
payment account according to an embodiment of the present disclosure.

[0013] FIG. 5 illustrates a process flow diagram of another exemplary
alternative process for verifying a billing address associated with a
payment account according to another embodiment of the present
disclosure.

[0014] FIG. 6 illustrates a data flow diagram for verifying a billing
address associated with a payment account according to an embodiment of
the present disclosure.

DETAILED DESCRIPTION

[0015] It is to be understood that the figures and descriptions of the
present disclosure have been simplified to illustrate elements that are
relevant for a clear understanding of the embodiments described herein,
while eliminating, for purposes of clarity, many other elements found in
computing systems and wireless communication devices communicating with
one or more remote computers or servers via a local, internet, cellular
or satellite networks, as well as computer systems or mobile telephones
running native or web-based applications or other software. However,
because such elements are well known in the art, and because they do not
facilitate a better understanding of the present invention, a discussion
of such elements is not provided herein. The disclosure herein is
directed to all such variations and modifications known to those skilled
in the art.

[0016] A "payment account processing system", "payment card processing
system" or "credit card processing network" or "card network", such as
the MasterCard network exists, allowing consumers to use payment cards,
or payment accounts, issued by a variety of issuers to shop at a variety
of merchants. With this type of payment account or payment card, an
account issuer or attribute provider, such as a bank, extends credit to a
customer to purchase products or services. When a customer makes a
purchase from an approved merchant, the account or card number and amount
of the purchase, along with other relevant information, are transmitted
via the processing network to a processing center, which verifies that
the card has not been reported lost or stolen and that the card's credit
limit has not been exceeded. In some cases, the customer's signature is
also verified, a personal identification number is required or other user
authentication mechanisms are imposed. The customer is required to repay
the bank for the purchases, generally on a monthly basis. Typically, the
customer incurs a finance charge for instance, if the bank is not fully
repaid by the due date. The account or card issuer or attribute provider
may also charge an annual fee. The payment card is a card that can be
presented (on-line or in-person) by the cardholder (i.e., customer) to a
merchant in order to make a payment. By way of example, and without
limiting the generality of the foregoing, a payment card can be a credit
card, debit card, charge card, stored-value card, or prepaid card or
nearly any other type of financial transaction card. Payment accounts, as
described herein, include any and all forms of non-card, cashless
payments, including, for example, mobile, digital wallet, key fob, or
direct carrier billing payments.

[0017] It is noted that as used herein, the term "customer", "cardholder,"
"card user," and/or "card recipient" can be used interchangeably and can
include any user who holds a payment card for making purchases of goods
and/or services. References to cardholders, payment cards, and the like
should also be understood to include users of any type of non-card,
cashless payment account as described above. Further, as used herein in,
the term "issuer" or "attribute provider" can include, for example, a
financial institution (i.e., bank) issuing a card, a merchant issuing a
merchant specific card, a stand-in processor configured to act on-behalf
of the card-issuer, or any other suitable institution configured to issue
a payment card. As used herein, the term "transaction acquirer" can
include, for example, a merchant, a merchant terminal, an automated
teller machine (ATM), or any other suitable institution or device
configured to initiate a financial transaction per the request of the
customer or cardholder.

[0018] As used herein, the term "processor" broadly refers to and is not
limited to a single- or multi-core general purpose processor, a special
purpose processor, a conventional processor, a Graphics Processing Unit
(GPU), an Applications Processing Unit (APU), a digital signal processor
(DSP), a plurality of microprocessors, one or more microprocessors in
association with a DSP core, a controller, a microcontroller, one or more
Application Specific Integrated Circuits (ASICs), one or more Field
Programmable Gate Array (FPGA) circuits, any other type of integrated
circuit (IC), a system-on-a-chip (SOC), and/or a state machine.

[0019] Countries such as the United States, United Kingdom and Canada
utilize the Address Verification System (AVS) for protecting against
payment account fraud. The AVS is used to verify the billing address of
an individual claiming to own a payment account. As will be understood by
one of ordinary skill in the art, the system operates in response to an
authorization request initiated by a merchant or acquirer, and compares a
billing address (or a portion of the billing address) of the payment
account provided by a customer with the billing address associated with
the payment account on file with the issuer or issuing bank. More
specifically, a customer may log on to a merchant website and begin a
purchase transaction. This may include entering a billing address and
payment account information. After submission of a payment, the merchant
forwards the payment account information and billing address to a card
network connection point or payment gateway in the form of an
authorization request. The acquiring bank sends the address information
to a payment network connection which then translates the billing address
into an address key, which is forwarded to the card network. The card
network transmits the authorization request to the card issuer. The card
issuer will compare the address key to their billing address records
associated with the payment account, and provide a response indicative of
a match or non-match of the billing address information. The issuer will
also provide a decision to approve or not to approve the transaction
based on other factors, such as the status of the account (e.g. if there
is a sufficient credit balance, has the card been reported stolen, etc.)
An authorization response is provided from the issuer, through the card
network, through the acquiring bank, before being returned to the
merchant, wherein the transaction will ultimately be revealed to a
customer as approved or declined.

[0020] Many international payment account issuing banks do not currently
have the capability to perform the above-described billing address
verification processing. Moreover, in addition to being a time-consuming
process, implementing this functionality into their existing systems
would require a significant outlay of resources. For example, issuers may
not have maintained up-to-date records of the billing addresses of their
cardholders. In order to implement an effective address verification
system, cardholder billing addresses would have to be updated and
verified. Moreover, software updates would be required for enabling, for
example, the intake of relevant input data (e.g. address keys),
performance of the described comparisons operations, and the generation
and transmission of the authorization response. Further still, cardholder
addresses may not be standardized in particular countries, creating
additional problems in implementing these address verification
capabilities.

[0021] Disclosed herein are processor-executable methods, computing
systems, and related processing for verifying billing address data
associated with a payment account, without the need to access billing
address data from a card issuer. More specifically, in order to provide a
dependable address verification service, a system must have access to a
database containing reliable payment account number data, as well as the
addresses of the holders of these payment accounts. In addition to card
issuers, a number of other third party entities or service providers may
also possess the required data for performing payment account billing
address verification. By way of non-limiting example only, credit
reporting agencies, such as Experian and TransUnion, operate in many
countries and manage databases containing the required information,
including card/account holder names, payment account numbers, and billing
addresses necessary for performing address verification operations.
Moreover, this information is generally stored in a standardized fashion,
enabling efficient comparisons. Systems and methods set forth herein are
operative to utilize these third party databases for performing the
address verification portion of a credit transaction approval process.

[0022] In one exemplary embodiment, a merchant computer system intakes
customer payment account data, including their billing address and
account or card number, for completing an online transaction. The
merchant system forwards this information to the acquiring bank, which
transmits the data to the card network in the form of an authorization
request. According to embodiments of the present disclosure, the card
network may analyze the authorization request, and identify any
transactions requiring alternative billing address verification
processing according to embodiments of the present disclosure. The card
network may also identify transactions which will be subject to existing
AVS processing. More specifically, by way of non-limiting example only,
the card network may analyze the submitted payment account number and
determine if the bank identification number (BIN) contained therein
corresponds to a bank residing in a country which performs traditional
AVS processing. If so, the card network will forward the authorization
request onto the card issuer for performing standard AVS and general
approval processing. However, if the card network identifies that, for
example, the residing country of the issuer does not provide traditional
address verification services, the card network will begin performing an
alternative address verification service on behalf of the issuer
according to embodiments of the present disclosure.

[0023] According to one embodiment, upon a determination that alternative
address verification processing must be performed, a card network will
transmit the authorization request to the issuer for approval of the
transaction independent of an address verification operation. This
authorization may include, for example, ensuring that a payment card in
question has not been stolen, that the account is in good standing, and
that the account carries a sufficient balance to complete the
transaction.

[0024] In order to perform the address verification processing according
to embodiments of the present disclosure, the card network will access
the databases of, for example, one or more credit reporting agencies, and
search for an address corresponding to the payment account number
included on the authorization request. In other embodiments, this step
would include sending a request to the credit reporting agency, including
the billing address and card number identified on the authorization
request. The credit reporting agency would transmit a response to the
card network in the form of a positive or negative response for a match
between the billing address provided on the request and that stored in
the credit reporting agency's database.

[0025] In one embodiment, once an issuer had completed its portion of the
authorization response (e.g. verifying an account status), an
authorization response would be returned to the card network. The card
network would proceed to enter or populate a specific field in the
authorization response with an indication of the results of the billing
address comparison provided by the credit reporting agency. This may
include providing a match code in the field, indicating if there is an
address match. The match code may also provide an indication as to what
degree of address match has been achieved. For example, current AVS
processing supports postal code level matching, full street address level
matching and exact text matching. Embodiments of the present disclosure
may provide for these varying degrees of address matching reflected in
the match code provided on the authorization response. A completed
authorization response continues to the acquirer, and finally to the
merchant for final transaction approval or denial.

[0026] In another embodiment of the present disclosure, a card network may
delay transmitting the authorization request to the issuer until an
address verification can be performed. Once an address verification has
been confirmed via the third party provider (e.g. a credit reporting
agency), the card network may place an address match indicator on the
authorization request and forward the same to the issuer to complete the
authorization (e.g. the account status authorization). In this way, an
issuer may be provided with a verified billing address data associated
with the payment account. This information may be used by the issuer for
any purpose, such as for incorporation into their approval decision
process or fraud models.

[0027] While the above embodiments describe the use of a credit reporting
agency's database for performing address verification operations, it
should be understood that any other sources of this information may be
used without departing from the scope of the present disclosure. Other
sources may include, by way of non-limiting example, databases of
shipping companies which may possess payment account and corresponding
address data. Other entities, such as merchants that ship products to
customers, may have databases including customer payment card or other
payment account data, as well as customer shipping address data, which
may be employed in embodiments. Moreover, while the embodiments have been
described in the context of a card network performing the steps of, for
example, determining the need for alternative address verification
processing, and acquiring an address verification from a third party
provider, it should be understood that these steps may be performed by
any of the systems described herein, including the merchant's computer
system or the acquiring bank's computer system, without departing from
the scope of the present disclosure.

[0028] Referring now to FIG. 1, there is shown a high-level diagram
illustrating an exemplary system for providing payment account address
verification services which do not rely on address information obtained
from a payment account issuer according to an embodiment of the present
disclosure. As shown in FIG. 1, system 100 includes a merchant computer
system 110. Merchant computer system 110 may transmit and receive data to
and from at least one source, including one or more customer IP devices
132, such as a personal computer or mobile phone via, for example a
network 150. Network 150 can be virtually any form or mixture of networks
consistent with embodiments as described herein including, but not
limited to, telecommunication or telephone lines, the Internet, an
intranet, a local area network (LAN), a wide area network (WAN), virtual
private network (VPN) and/or a wireless connection using radio frequency
(RF) and/or infrared (IR) transmission to name a few. Data transmitted
from customer IP device 132 to merchant computer system 110 may include
identification of items to be purchased, purchase amounts, payment
account data (e.g. a payment account number and card security code) and
billing address information input by a customer during the course of
purchase transaction. Merchant computer system 110 may store this and any
other transaction-related data on a database 115.

[0029] Merchant computer system 110 may transmit some or all of this data,
such as transaction amount, payment account data and billing address
information, to an acquiring bank computer system 160 for generating an
authorization request. Acquiring bank computer system 160 generates an
authorization request, including transaction amount, the customer-input
payment account number and billing address information, to a card or
payment network computer system 120. Payment network computer system 120
is operative to, for example, identify any authorization requests which
either: 1) will be subject to standard address verification processing;
2) require alternative address verification processing according to
embodiments of the present disclosure; or 3) require no address
verification (e.g. if the merchant does not require such verification).
These determinations may be accomplished by for example, analyzing the
BIN of the payment account number and determining if the issuing bank
identified thereby provides existing address verification services. In
one embodiment, payment network computer system 120 may access a database
125 which includes a listing of issuing banks and indications of their
ability to provide address verification.

[0030] According to one embodiment of the present disclosure, if payment
network computer system 120 determines that the card issuer is incapable
of performing address verifications, or if payment network computer
system 120 is unable to verify that the issuer provides such services,
payment network computer system 120 may proceed with alternative address
verification processing. In one embodiment, payment network computer
system 120 will transmit a request, including the customer-input billing
address and payment account information, to, for example, a credit
reporting agency computer system 130, for address verification. Credit
reporting agency computer system 130 may compare the provided payment
account number and billing address information to an internal database
135 for the purpose of verifying the billing address. The results of the
verification (e.g. a positive or negative indication of a match) may be
provided to payment network computer system 120, and may be stored on
database 125.

[0031] In one embodiment, along with the request for address verification
transmitted to credit reporting agency computer system 130, payment
network computer system 120 transmits the authorization request including
at least the payment card information to the issuer computer system 140.
Card issuer computer system 140 is configured to perform account
verification operations, including for example, determining an account
standing or status. The results of these verification operations are
included on an authorization response, and returned to payment network
computer system 120. Payment network computer system 120 receives the
authorization response from card issuer computer system 140, and updates
or supplements the authorization response with the address verification
results provided by credit reporting agency computer system 130. The
completed authorization response is transmitted to acquiring bank
computer system 160 and subsequently to merchant computer system 110 for
final purchase transaction approval or disapproval, and communication of
purchase transaction approval or decline to customer IP device 132.

[0032] Referring now to FIG. 2, a more detailed embodiment of an exemplary
payment network computer system 120 as described above with respect to
FIG. 1 is shown. Payment network computer system 120 includes a data bus
220 providing communication among system components. One or more computer
processors, designated by central processing unit (CPU) 222, is in
communication via data bus 220 with components including program memory
230, local memory 228, user interface 226, and input/output interface
224. Program memory 230 stores programs including an operating system
(OS) 232, which manages the computer hardware and provides common
services for efficient execution of various logic circuitry including
hardware, software and/or programs. Program memory 230 further stores one
or more programs 234, which include computer-executable instructions to
execute rules to perform the processing described herein, such as
identifying authorization requests requiring alternative address
verification processing according to embodiments of the present
disclosure, managing communications between payment network computer
system 120 and third party databases (e.g. credit reporting agency
computer system 130), and modifying an authorization response to include
address verification results. Payment network computer system 120 further
includes device communication management program 236, which includes
computer-executable instructions to manage communications, including
communications of data to and from customer devices and external
databases. The processor 222 (or CPU) carries out the instructions of
computer programs, which operates and/or controls at least a portion of
the functionality of payment network computer system 120. Program
instructions may be loaded into local memory 228 for efficient and
high-speed execution by CPU 222. Programs may be arranged in one or more
modules, and functionality of programs may be implemented in program code
that may be arranged as one or more programs or modules, which need not
be stored on a same memory device, or executed by a single CPU.

[0033] Payment network computer system 120 further includes device
input/output interface 224 configured to receive and output data and
information to and/or from payment network computer system 120 from
and/or to peripheral devices and networks operatively coupled to the
system. Such networks may include exemplary network 150, which manages
communications among, for example, customer IP devices 132, merchant
computer system 110, payment network computer systems 120, credit
reporting agency or third party computer system(s) 130, issuer computer
system 140 and/or acquirer computer system 160. The I/O interface 224 may
include a query interface configured to accept and parse requests
customer IP devices 132 and any external systems and pass those requests
to CPU 222 for processing using instructions of device communication
management program 236.

[0034] The program memory 230 may include one or more of any form of data
storage device including but not limited to electronic, magnetic, optical
recording mechanisms, combinations thereof or any other form of memory
device capable of storing data. The CPU 222 may be in the form of one or
more computer processors, or may be in such forms as a distributed
computing system, a centralized computing system, a network server with
communication modules and other processors, or nearly any other automated
information processing system capable of executing instructions stored in
program memory. Payment network computer system 120 may be embodied as a
data warehouse or repository for storing, managing and processing
cardholder address verification related data received from a variety of
sources on a periodic or continuous basis.

[0035] Each or any combination of the modules and components shown in
FIGS. 1 and 2 may be implemented as one or more software modules or
objects, one or more specific-purpose processor elements, or as
combinations thereof. Suitable software modules include, by way of
example, an executable program, a function, a method call, a procedure, a
routine or sub-routine, one or more processor-executable instructions, an
object, or a data structure.

[0036] Referring generally to FIG. 3, an exemplary process flow diagram
illustrating an address verification process 300 according to the prior
art is shown. A merchant system receives 310 payment account information
and billing address information from a cardholder. This information may
be input by a customer through, for example, a merchant website at the
payment stage of an online purchase transaction. The merchant system
transmits 320 the payment account number and billing address information,
as well as other information, such as transaction amount and security
code data, to an acquiring bank computer system. The acquiring bank
system transmits 330 an authorization request, including payment account
and address information, as well as transaction amount and security code
data, to a card network computer system associated with the payment
account. The payment or card network system transmits 340 the
authorization request to an issuer system, including the payment account
and address information as well as transaction amount and security code
data, using an authorization network. The authorization request may be in
a standardized format for such authorization requests transmitted via the
authorization network. The standardized format may include one or more
fields for address data. The issuer system verifies 350 the standing of
the account (not delinquent, not reported stolen, available credit at
least the transaction amount, etc.), and compares the address provided
with the authorization to its internal billing address database. The
issuer system completes the authorization requests, indicating the
results of these verification operations, and returns 360 an
authorization response to the issuer system, via the authorization
network. The card network system transmits the authorization response to
the acquiring bank system. The acquiring bank system transmits the
response to the merchant system. The merchant system then processes the
transaction, in the event of an approval, and communicates approval to
the customer, or communicates the denial to the customer.

[0037] Referring generally to FIG. 4, an exemplary process flow diagram
illustrating an address verification process 400 according to an
embodiment of the present disclosure is shown. A merchant system receives
410 payment account information and billing address information from a
cardholder. This information may be input by a customer through, for
example, a merchant website at a payment stage of an online purchase
transaction. The merchant system transmits 420 the payment account number
and billing address information, as well as transaction amount and
security code data, to an acquiring bank system. The acquiring bank
system transmits 430 the payment account and address information, as well
as transaction amount and security code data, in the form of an
authorization request to a card network system associated with the
payment account. The card network system determines whether alternative
address verification processing is needed. Otherwise stated, the card
network system identifies whether there is a need for alternative address
verification processing 435. This determination may be accomplished by
for example, analyzing the BIN of the payment account number and
determining if the issuing bank identified thereby provides address
verification services. In one embodiment, card network system may access
a database which includes a listing of issuing banks and indications of
their ability to provide address verification. Responsive to determining
that alternative address verification processing is needed, such as a
result of the database records indicating that the issuing bank is not
capable of performing address verifications, the card network system
transmits 460 the customer-input billing address and payment account
information (e.g. in the form of a request for verification) to a third
party computer system, such as a credit reporting agency computer system.
This transmission may be accomplished via a network other than the card
authorization network, and may use any suitable protocol, such as a
virtual private network, ftp, secure shell, https, or other suitable
secure transmission protocol. The third party computer system, responsive
to receiving the request for verification, compares 470 the provided
payment account number and billing address information to an internal
database for the purpose of verifying the billing address, and returns
the results (e.g. an indication of a match or a non-match) to the card
network. In embodiments, the results may include, in addition to a match
indication, an indication of a confidence level of a match. In
embodiments, the match may include a postal code level match, an exact
match, a street level match, and other levels of match, by way of
non-limiting example.

[0038] In one embodiment, at or about the same time the card network
transmits the request for billing address verification, the card network
system transmits 440 the authorization request including at least the
payment account information and transaction amount to the issuer computer
system. The issuer computer system verifies 450 the account standing or
status, includes the results on the authorization request, and returns an
authorization response including these results to the card network. The
authorization response may be one of an approval or a denial. The card
network receives 480 the results from both the issuer and the credit
reporting agency. The card network updates 490 the authorization response
with the address verification results from the credit reporting agency
system. The card network determines, based on a set of rules, an
authorization response to provide to the merchant computer system. In
general, if the issuer response is an approval, and the credit agency
response is a match, then the card network provides an approval
authorization response. If the issuer response is a denial, then the
completed authorization response is returned 495 to the merchant system
via the acquiring bank system.

[0039] Referring generally to FIG. 5, an exemplary process flow diagram
illustrating another address verification process 500 according to an
embodiment of the present disclosure is shown. A merchant receives 510
payment account information and billing address information from a
cardholder. This information may be input by a customer through, for
example, a merchant website at the conclusion of an online purchase
transaction. The merchant transmits 515 the payment account number and
billing address information to an acquiring bank. The acquiring bank
transmits 520 an authorization request, including payment account and
address information, to a card network associated with the payment
account. The card network identifies 525 a need for an alternative
address verification processing. This may be accomplished via the
above-described BIN analysis. If the issuer is incapable of performing
address verifications, the card network sends 530 the address and payment
account information to a third party, such as a credit reporting agency,
for billing address verification. The third party or credit reporting
agency compares 535 the provided payment account number and billing
address information to an internal database for the purpose of verifying
the billing address, and returns the results to the card network. The
card network receives 540 the results from the credit reporting agency.
The card network sends 545 the authorization request to issuer, including
payment account information, as well as the results of the billing
address verification. The issuer may use this address verification to,
for example, update its own internal database with verified billing
address data. The issuer proceeds to verify 550 the account standing or
status, includes the results of this verification on an authorization
response, and transmits the authorization response to the card network.
The card network receives 555 the authorization response from the issuer,
and returns 560 it to the merchant via the acquiring bank.

[0040] Referring to FIG. 6 an exemplary data flow diagram for verifying a
billing address associated with a payment account according to an
embodiment of the present disclosure is shown. Merchant computer system
110 may transmit and receive data to and from at least one source,
including one or more customer IP devices 132, such as a personal
computer or mobile phone via, for example a network. Data transmitted
from customer IP device 132 to merchant computer system 110 may include
the identification of items to be purchased, purchase amounts, payment
account data (e.g. a payment account number and card security code) and
billing address information input by a customer during the course of a
purchase transaction. This information may be obtained in response to a
request by merchant computer system 110. Merchant computer system 110 may
store this and any other transaction-related data billing and payment
database 115.

[0041] Merchant computer system 110 may transmit some or all of this data,
such as transaction amount, payment account data and billing address
information, to an acquiring bank computer system (not shown) for
generating an authorization request, including transaction amount, the
customer-input payment account number and billing address information.
This information is subsequently transmitted to card or payment network
computer system 120. Payment network computer system 120 is operative to,
for example, identify any authorization requests which require
alternative address verification processing according to embodiments of
the present disclosure. This identification may be accomplished by, for
example, analyzing the BIN of the payment account number for determining
if the issuing bank identified thereby provides existing address
verification services. In one embodiment, payment network computer system
120 may access a database 125 which includes a listing of issuing banks
and indications of their ability to provide address verification.

[0042] If payment network computer system 120 determines that alternative
address verification processing is required, payment network computer
system 120 will transmit a request, including the customer-input billing
address and payment account information to a third party computer system,
such as credit reporting agency computer system 130, for address
verification. Credit reporting agency computer system 130 may compare the
provided payment account number and billing address information to an
internal database 135 for the purpose of verifying the billing address.
The results of the verification (e.g. a positive or negative indication
of a match) may be provided to payment network computer system 120.

[0043] In one embodiment, along with the request for address verification
transmitted to credit reporting agency computer system 130, payment
network computer system 120 transmits the authorization request including
at least the payment card information to the issuer computer system 140.
Card issuer computer system 140 is configured to perform account
verification operations, including for example, determining an account
standing or status. The results of these verification operations are
included on an authorization response, and returned to payment network
computer system 120. Payment network computer system 120 receives the
authorization response from card issuer computer system 140, and updates
or supplements the authorization response with the address verification
results provided by credit reporting agency computer system 130. The
completed authorization response is transmitted to the acquiring bank
computer system (not shown) and subsequently to merchant computer system
110 for final purchase transaction approval or disapproval, and
communication of purchase transaction approval or decline to customer IP
device 132.

[0044] The flow charts described herein do not imply a fixed order to the
steps, and embodiments of the present invention may be practiced in any
order that is practicable. In embodiments, one or more steps of the
methods may be omitted, and one or more additional steps interpolated
between described steps. Note that any of the methods described herein
may be performed by hardware, software, or any combination of these
approaches. For example, a non-transitory computer-readable storage
medium may store thereon instructions that when executed by a processor
result in performance according to any of the embodiments described
herein. In embodiments, each of the steps of the methods may be performed
by a single computer processor or CPU, or performance of the steps may be
distributed among two or more computer processors or CPU's of two or more
computer systems. In embodiments, each of the steps of the methods
described with reference to FIGS. 3-5 may be performed by an applications
processing unit (APU), which may include one or more processors. In
embodiments, one or more steps of a method may be performed manually,
and/or manual verification, modification or review of a result of one or
more processor-performed steps may be required in processing of a method.

[0045] The embodiments described herein are solely for the purpose of
illustration. Those in the art will recognize that other embodiments may
be practiced with modifications and alterations limited only by the
claims.